The French President Sarkozy has proposed an initiative which seeks to create an osmotic Franco-German tax system. This proposal has found little favor with the German and the project, which might just be a grandiose yet empty Sarkozy statement, seems to develop more into the direction of a rapprochement of the French to the German system. Yet, in this case it is the thought that counts and any French actual moves towards such a tax cooperation in the future would set a tremendous precedent for the rest of Europe.
The German government, historically and still, a vocal opponent of European economic governance ironically has initiated a move towards solidified European control of national budgets. The tentative agreement of the European Council to establish a permanent mechanism would effectively – if not de jure – abolish the no-bail-out clause (one of the German conditions to join EMU back in the Kohl-era) and assure the future availability of aid for Eurozone members in financial distress. The strong conditionality of this mechanism (the EMF?) would of course mean nothing but increased – inter-gouvernmental, yet nonetheless – European power over the fiscal policy of Eurzone countries. Remember that both France and Germany were in the past (not) reprimanded for their infractions against the stability rules, they now have initiated a process that would make it more difficult for them to avoid such a reprimand in the future.
Lastly, the British and French governments signed a far-reaching defense agreement recently, which goes beyond all previous attempts at military integration in Europe. This is not an EU-initiative of course, far from it, but it also showcases how restraints forced upon European countries due to the financial and economic crises (and their subsequent policy response – austerity measures) makes cooperation possible where it had not been considered before. In this case, France and Britain will coordinate and share their aircraft carriers, while also engaging in common nuclear research. There aren’t many subjects considered as elementary to national sovereignty than these.
Does this mean that an EU-superpower will emerge over the next few years or at least decades? Does it mean that national governments will slide from prominence and be replaced by faceless European technocrats running the show? No, of course not. Far from it. Yet, these small incremental steps continue a seemingly impregnable move towards an ever closer union in Europe. This closer union does not at all times result in more power to the EU, or not to the EU-institutions in any case, but it does result in power and sovereignty devolving away from national governments. And it is subject to keep an eye on as Europeans battle the aftermath of the financial and economic turmoil of the last few years.
